Question: For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would

For each of the following errors, considered individually, indicate whether the error would cause the trial balance totals to be unequal. If the error would cause the trial balance totals to be unequal, indicate whether the debit or credit total is higher and by how much.
a. The payment of an insurance premium of $5,400 for a three-year policy was debited to Prepaid Insurance for $5,400 and credited to Cash for $4,500.
b. A payment of $270 on account was debited to Accounts Payable for $720 and credited to Cash for $720.
c. A purchase of supplies on account for $1,600 was debited to Supplies for $1,600 and debited to Accounts Payable for $1,600.

Step by Step Solution

3.39 Rating (180 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a The totals are unequal The debit total is hig... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1139-B-A-G-F-A(11188).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!